Ben Horowitz: a16z avoids neoclouds — bandwidth went from $1,500 to $50/Mbps and wiped out holders
SumitGup · x · 2026-10-17
a16z co-founder Ben Horowitz explains why the firm hasn't invested in any neoclouds: pathological debt situations can wreck anyone, compute resale can become a dangerous arbitrage business that flips upside down easily, and the dotcom bubble taught him how uncontrollable the dynamics are—bandwidth cost $1,500/Mbps in 1999 with mandatory 3-year contracts, then fell to $50/Mbps by 2001, killing anyone holding it. "That whole thing scares me, having been through it."
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